Buy These 2 New Stocks Before They Go Over 80%, Says JPMorgan
Over the past week, investors have faced multiple conflicting signals from the markets. The April jobs report, which is expected to post nearly a million new jobs for the month, only showed 266,000. The official unemployment figure edged up to 6.1%, and wages hours also increased – by 0.7%. The latter would appear to be positive – except that, combined with the massive government stimulus pumping liquidity into the economy – higher wages are seen as a sign of inflation. At first glance, this appears to be an environment that would encourage investors to be cautious. Except that the Fed has signaled that it will not end its easy money policies. Low interest rates have helped revive the bull market engine in recent years for two reasons. First, it keeps the cost of credit low, making it easy to take advantage of all kinds of purchases – cars, housesâ¦ even stocks. And second, with rates low, bond yields have not been able to rise significantly. For investors looking for a return, this makes stocks the place to go. It also creates an environment conducive to IPO events. The markets have been trending steadily and long term for months; the S&P 500 has gained 44% in the past 12 months. With return potential like this, it’s no wonder that companies look to the public markets for capital raising. When it comes to stocks, a rising tide will really lift all boats. This brings us to JPMorgan. The bank’s stock analysts looked for stocks that were ready to gain under current conditions. And they exploited two new stocks in the public markets that are likely to jump 80% or more in the coming months – a solid return investors should note. After running both tickers in the TipRanks database, we discovered that the rest of the street was also standing squarely in the bullish camp, each benefiting from a consensus of âStrong Buyâ analysts. LAVA Therapeutics (LVTX) We will start with a biotechnology company based in the Netherlands. LAVA Therapeutics is focused on cancer treatments and is working on the development of what it calls bispecific gamma-delta T cell engines. These compounds are intended to activate the innate and adaptive immune systems, using the body’s own response to fight tumors. LAVA’s pipeline consists of four proprietary compounds, and a fifth which is being studied in combination with Janssen. All five drug candidates are in preclinical testing. The lead candidate, LAVA-051, is expected to start a Phase 1 / 2a clinical trial in the first semester of this year, while a second candidate, LAVA-1207, will begin a Phase 1 / 2a trial in 2:21 . These drug candidates are under development to treat multiple myeloma and prostate cancer, respectively. LVTX shares went public on March 25, in an IPO that raised $ 100.5 million. The shares started trading at $ 15 and saw 6.7 million shares hit the market. Among the bulls is JPM analyst Jessica Fye, who likes the fundamentals of this new public stock. Fye rates LVTX an overweight (i.e. Buy), and his price target of $ 22 implies robust upside potential of ~ 86% for the coming year. (To view Fye’s background, click here) âOur overweight score is based on our positive opinion of the company’s proprietary platform, gamma-delta bsTCE, which redirects a specific group of T cells called gamma-T cells. delta to tumor cells.We see ready-to-use bsTCEs from LAVA, which can conditionally activate gamma-delta T cells in a tumor / antigen-directed manner, as differentiated, potentially leading to further therapy. safe and at a more sustainable profit. -051 is starting to bother the platform, we see a rise in stocks from the start of 2022, “Fye noted. In a short time on the public market, LAVA’s unique approach cancer treatment has caught the attention of three Wall Street biotech analysts – and all three agree it’s a buy-stock, which the Strong Buy consensus rating unanimously supports. The shares are trading at 11.80 $ and their average price target of $ 23.67 is even more bullish than Fye allows, suggesting a rise of around 100% over the next 12 months. (See LVTX stock market analysis on TipRanks) Zhihu (ZH) From biotechnology, let’s move on to online content. The net has given content creators almost unlimited scope to work in, and Zhihu operates in the Chinese online content market. The company’s website is a Quora-style question-and-answer forum for users to ask questions of the community or provide answers. A look at some of the company’s numbers shows its size. At the end of December last year, Zhihu had a total of 43.1 million content creators, who had posted more than 315 million questions and answers. The Average Monthly User Count (MAU), a key metric for any website, fell from 43.1 million in 4Q19 to 75.7 million in 4Q20. Zhihu held an IPO in the United States on March 26 to raise capital for new operations and expansion. The company has put 55 million shares on the US public markets, at $ 9.50 each. The IPO raised $ 522.5 million in gross proceeds, and Zhihu now has a market cap of $ 4.58 billion. At the start of trading, ZH shares came under pressure after a Securities and Exchange Commission ruling on accounting regulations. U.S. law requires accounting firms to allow U.S. regulators to review financial audits of foreign companies, under threat of possible delisting from U.S. stock markets. The SEC decision promises a stricter application of this provision. However, even under this pressure, Zhihu’s IPO was the third-largest by a Chinese company in the US markets so far this year. In a cover initiation report on Zhihu, JPM analyst Binbin Ding notes several factors that bode well for the stock, two of which in particular stand out: â(1) Differentiated positioning. Unlike online content communities which are primarily focused on entertainment, Zhihu is known for the depth of its content and is recognized as the most trusted online content community in China (CIC survey). This positioning makes it the essential platform for users looking for quality answers. (2) Diversified Monetization Models, including Ads, Membership, Content Commerce Solution, Ecommerce, and Education. In particular, we believe that Zhihu’s content commerce solutions are an innovative model with significant potential growthâ¦ âDing summed up,â We ââexpect Zhihu to register a CAGR of 112% between 2020 and 22E, thanks to 35% traffic. CAGR and a monetization CAGR of 57%. These growth rates make Zhihu the fastest growing digital content operator in our coverage universe. To that end, Ding gives ZH shares an overweight (i.e. buy) rating, along with a price target of $ 16 which portends an impressive growth potential of 96% this year. . (To view Ding’s track record, click here) Ding’s bullish stance on ZH is in line with Wall Street’s view. The stock has a Strong Buy consensus rating, based on 3 buy ratings established in recent weeks . The shares are trading at $ 8.15 and their average price target of $ 15.23 suggests an increase of around 87% for the year ahead. (See ZH’s stock analysis on TipRanks) great ideas for stocks traded at attractive valuations, visit the best stocks to buy from TipRanks, a newly launched tool that brings together all information about TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of analysts in featured. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.